A closed mind about an open world
Wednesday, August 23, 2006, 09:03 PM - Copyfight
Over the past 15 years, a group of scholars has finally persuaded economists to believe something non-economists find obvious: "behavioural economics" shows that people do not act as economic theory predicts.
However, this is not a vindication of folk wisdom over the pointy-heads. The deviations from "rational behaviour" were not the wonderful cornucopia of humanist motivations you might imagine. There were patterns. We were risk-averse when it came to losses - likely to overestimate chances of loss and underestimate chances of gain, for example. We rely on heuristics to frame problems but cling to them even when they are contradicted by the facts. Some of these patterns are endearing; the supposedly "irrational" concerns for equality that persist in all but Republicans and the economically trained, for example. But most were simply the mapping of cognitive bias. We can take advantage of those biases, as those who sell us expensive and irrational warranties on consumer goods do. Or we can correct for them, like a pilot who is trained to rely on his instruments rather than his faulty perceptions when flying in heavy cloud.
Studying intellectual property and the internet has convinced me that we have another cognitive bias. Call it the openness aversion. We are likely to undervalue the importance, viability and productive power of open systems, open networks and non-proprietary production. Test yourself on the following questions. In each case, it is 1991 and I have removed from you all knowledge of the past 15 years.
Keep Reading A closed mind about an open world by James Boyle in the Finantial Times.
Gracias Ricardo.
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